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13 APPENDIX E - INTERNATIONAL CASE STUDIES - CANADA
13.1 Background
13.1.1 Canada has a higher absolute energy use per capita than most International Energy Agency ( IEA) countries ranking second highest. However, according to an IEA analysis, Canada's energy efficiency improved at an average annual rate of 1% between 1990 and 1998 which was the fourth fastest among the 13 countries that were included in the analysis.
13.1.2 The report "Improving Energy Performance in Canada 2005-2006" which was published by the government department Natural Resources Canada indicates that between 1990 and 2004, energy efficiency levels have increased by 14% of which 21% were realised in the residential sector, followed by the transportation sector (17.6%), the industrial sector (11.5%) and the commercial/institutional sector (0.4%).
13.1.3 In terms of renewable energy, Canada produces 59% of its electricity through large scale hydro power sources and 2% through small scale hydro power sources. Electricity production from other renewable energy sources such as solar, wind and biomass increased from 0.8% to 1.9% of total electricity production between 1991 and 2003.
13.2 The key players in the Canadian Energy Efficiency Market
13.2.1 Natural Resources Canada ( NRCan) is a department of the Canadian government which is responsible for sustainable development and the use of natural resources, including, energy, forests, minerals and metals. Since the early 1990s NRCan has emphasized the promotion of energy efficiency and renewable energy sources in order to reduce Canada's greenhouse gas emissions. NRCan's key policy instruments involve a number of different areas which are set out below.
Regulation
13.2.2 The Energy Efficiency Act gives the Government of Canada the authority to make and enforce regulations, primarily for the purpose of establishing performance and labelling requirements for energy-using products, doors and windows.
Financial Incentives
13.2.3 NRCan uses financial incentives to encourage final users of energy to employ energy efficiency and renewable energy technologies and practices.
Leadership
13.2.4 Leadership means setting an example for other levels of government and for the private sector by increasing energy efficiency and the use of alternative energy in the Government of Canada's operations.
Information
13.2.5 NRCan disseminates information to consumers, using methods that range from broad distribution to individual consultations with clients, to increase awareness of the environmental impact of energy use and to encourage consumers to become more energy efficient and make greater use of alternative energy sources. Activities include publications, exhibits, advertising, toll-free lines, conferences, websites, workshops, training, building, design software and promotional products.
Voluntary Initiatives
13.2.6 NRCan's undertakes voluntary efficiency and alternative energy ( EAE) initiatives targeted at all sectors of the Canadian end-use energy market, with a particular focus on large consumers of energy in the commercial/institutional and industrial sectors and organizations whose products are important determinants of energy use. NRCan provides a variety of support services to assist and stimulate action by companies and institutions on energy efficiency, including developing standards and training.
Research, Development and Demonstration
13.2.7 NRCan's EAE initiatives support the development and dissemination of more energy-efficient equipment, processes and technologies, and alternative energy technologies. R&D also provides the scientific knowledge needed to develop the technologies, codes, standards and regulations required for the sustainable use of energy.
13.2.8 The Office of Energy Efficiency ( OEE) is a department within Natural Resources Canada that plays an important role in managing NRCan's EAE initiatives. It is Canada's Centre of excellence for energy conservation, energy efficiency and alternative fuel information and plays a dynamic leadership role in helping Canadians reduce energy costs while contributing to a healthier environment as it provides practical advice to a wide range of consumers reaching from individual consumers to industry and large organisations, schools and communities.
13.2.9 The OEE is aggressively pursuing its vision of "Leading Canadians to Energy Efficiency at Home, at Work and on the Road". Its main aim is to overcome the market barriers of inadequate information and knowledge and financial and economic constraints on energy users.
13.2.10 The OEE is also responsible for
- Collecting and analysing data on energy end-use and publishing the annual report "Energy Efficiency Trends in Canada"
- Developing new measures to increase the impact and reach of NRCan's support for energy efficiency improvement
- Modifying existing programmes to increase their effectiveness and efficiency
- Reporting annually on the "State of Energy Efficiency in Canada"
- Communicating up-to-date information on energy efficiency and alternative transportation fuels through its publications and website
- Managing Canada's Energy Efficiency Awards which were developed to encourage and achievements in energy efficiency by businesses, institutions, communities, governments and individuals. Awards are presented annually in the categories equipment & technology, housing, buildings, industry, transportation (on-road), outreach and media.
13.2.11 In addition, there is a Canadian Energy Efficiency Alliance which is a not-for-profit organization established in 1995 in response to a lack of coordinated multi-stakeholder effort to promote the efficient use of energy in Canada. The Alliance is the leading non-government organisation for energy efficiency and works in partnership with manufacturers, utilities, governments, builders, labour, consumer groups, and environmental organisations to facilitate the adoption of energy efficiency measures in Canada. It is supported through fees and project contributions from members.
13.2.12 In May 2001, the Alliance launched the online Canadian Energy Efficiency Centre. This Centre is a database-driven website that provides individuals with easy access to energy efficiency related information, resources, discussion groups and best practice examples.
13.3 Regulations and Standards
13.3.1 Through the extensive development of standards, ratings and regulations, the OEE helps Canadians make informed, energy-efficient choices when buying, selling or manufacturing energy-using equipment. By prescribing minimum energy efficiency performance levels, inefficient energy-using equipment is eliminated from the Canadian market, increasing the overall energy efficiency levels of buildings and equipment. Some examples are set out in the following sections.
Model National Energy Code for Buildings
13.3.2 The Model National Energy Code for Buildings ( MNECB) was released in 1997. This energy code represents a Canadian standard for efficiency in buildings. In February 2007 it was agreed that the MNECB will be updated to the National Building Code taking account of more recent energy efficiency requirements. This update is currently in progress.
R-2000 Standard
13.3.3 The R-2000 Standard includes requirements related to energy efficiency, indoor air quality and the use of environmentally responsible products and materials. Rather that specifying exactly how a house must be built, this Standard sets criteria for how a house must perform. This leaves the designer and builder free to choose the most effective and economical way to build it.
13.3.4 The R-2000 Standard requirements are in addition to those required by building codes. In general, the R-2000 Standard involves the following:
- Builder's licence: Only home builders who have completed R-2000 builder training and hold a current R-2000 builder licence can build homes that can be certified to the R-2000 Standard.
- Energy budget: R-2000 homes must operate within a specific energy budget, based on the characteristics of the home and the climate conditions where it's built. Typically, R-2000 homes need 30 percent less energy to operate than conventional new homes. Common in R-2000 homes are additional insulation; double-glazed, low-emissions, gas-filled windows with insulated spacers; and high-efficiency heating systems.
- Whole-house ventilation: Every R-2000 home must have a whole-house ventilation system that supplies fresh outdoor air to all living areas in the home.
- Environmental pick list: Every R-2000 home builder must choose from a "pick list" of options for indoor air quality and environmental features. The indoor air-quality features can include items such as hardwood flooring and non-solvent-based adhesives and finishes.
- Water conservation: Every R-2000 home must be equipped with water-conserving toilets, faucets and shower heads.
- Independent inspections: Every home submitted for R-2000 certification must undergo a series of independent inspections and tests to verify that the requirements of the R-2000 Standard have been met.
EnerGuide Rating
13.3.5 Another standard is the EnerGuide Home rating which is a standard measure of a home's energy performance. It indicates how energy efficient a home is on a scale of 0-100 where for example an old, not upgraded house has a rating between 0 and 50; a new energy efficient house has a rating of 75-79 and an "advanced house that uses little or no purchased energy has a rating of 91-100.
13.3.6 There is also an EnerGuide Equipment rating which rates and labels the energy efficiency of major household electrical appliances and heating, ventilating and air-conditioning ( HVAC) equipment. The EnerGuide label shows how much energy major appliances use so you can easily compare models of the same size and class.
ENERGY STAR for New Homes Initiative
13.3.7 Furthermore, the " ENERGY STAR for New Homes Initiative" promotes specific energy efficiency guidelines that enable new homes to be approximately 30 percent more energy efficient than those built to minimum provincial building codes. A qualifying home is one that has been built by a licensed builder who incorporates energy efficient features into the home so that it can meet the required technical specifications. Upon completion, Natural Resources Canada issues an ENERGY STAR label and certificate to the homeowner.
13.3.8 The international ENERGY STAR symbol is also used for equipment and identifies the most energy-efficient products in their class. Products that carry the ENERGY STAR symbol meet premium levels of energy efficiency - most are 10 to 50 percent more efficient than the minimum regulated standard in Canada.
13.3.9 Surveys show that Canadians have embraced the concept of product energy efficiency to make smart decisions about the items they buy with energy conservation in mind. The ENERGY STAR label is now recognized by 60% of Canadians who look to this brand to identify products that use less energy and save money.
13.4 Supporting programmes for energy efficiency and microgeneration
13.4.1 The Office of Energy Efficiency offers a wide range of programmes and incentives for energy efficiency to all sectors of the Canadian economy. Support includes grants and incentives, information and advice, workshops, and publications. There are also a large number of provincial and municipal programmes available which will not be covered as part of this case study. The focus will be on national programmes.
13.4.2 One of the OEE's key tasks is managing the Government of Canada's recently launched ecoENERGY Efficiency Initiative which includes a number of different programmes to reduce energy use in buildings and houses, industry, retrofits, personal vehicles and fleets. The individual programmes of the eco ENERGY Efficiency Initiatives are set out below:
ecoENERGY Retrofit
13.4.3 This program provides financial support to home owners, small and medium-sized businesses, public institutions and industrial facilities to help them implement energy saving projects that reduce greenhouse gases. The programme was launched in April 2007 and ends in March 2011.
13.4.4 The maximum grant a home owner can receive per home or multi-unit residential building is CAD$5,000. Only homes that have had pre- and post-retrofit evaluations from an NRCan-licensed local energy advisor are eligible for grants. The cost of the energy efficiency evaluation must be paid by the home owner. The grant amount is based on each of the recommended retrofits that were completed and the relative impact the retrofits have on the energy efficiency of the home.
13.4.5 Small and medium-sized organisations that own, manage or lease commercial and institutional buildings, provincial, territorial and municipal buildings or multi-unit residential buildings and that pay the energy bills can also apply for the ecoENERGY Retrofit programme. In this case, an incentive of CAD$10 per gigajoule of estimated annual energy savings is paid after the project has been completed and the work has been verified. The maximum grant is up to 25% of the total project cost and CAD$500,000 per project.
13.4.6 For industrial facilities, NRCan provides a financial incentive of up to 25 % of project costs up to a maximum of $50,000 per application and $250,000 per corporate entity to help small- and medium-sized industrial facilities implement energy-saving projects and reduce greenhouse gas emissions.
ecoENERGY for buildings and houses
13.4.7 To promote the energy-efficient design of new buildings, the OEE offers a number of tools and activities including simulation software, training, information and access to stakeholder networks. Existing buildings are covered by the ecoENERGY retrofit programme.
13.4.8 The Industrial Buildings Incentive Programme ( IBIP) aims to increase the energy efficiency of newly constructed industrial buildings and offers an incentive of up to $80,000 to companies which are building new industrial facilities to offset initial energy efficiency design costs. Every year, 8-10 projects are evaluated and selected from proposals.
13.4.9 The Commercial Building Incentive Programme provides financial incentives of up to $60,000 to eligible building owners who construct new commercial, institutional and multi-unit residential buildings that are at least 25% more efficient than similar buildings constructed to meet the Model National Energy Code for Buildings.
ecoENERGY for industry
13.4.10 The industrial sector is Canada's largest energy user, but it has become much more energy efficient over the years. The OEE works hand-in-hand with industry to encourage the sector to invest in, develop and use methods and industrial processes that are more energy efficient. The Canadian Industry Program for Energy Conservation ( CIPEC) is an industry-government partnership that helps Canada's industries improve their energy efficiency and reduce greenhouse gas emissions that contribute to climate change. Since 1975, CIPEC has helped industrial organisation increase energy efficiency levels through different measures, such as:
- Incentives for industrial energy retrofit projects
- Incentives for industrial energy assessments
- Energy management workshops customised to meet specific needs
- Employee awareness programmes
- Capital cost allowances for energy efficient and alternative energy systems.
- Benchmarking information, case studies, technical guides and a twice-monthly newsletter
- Boiler efficiency calculator to quickly analyze the efficiency of boiler operations
- Energy management services directory that helps companies locate contractors
ecoENERGY for Personal Vehicles
13.4.11 This personal vehicles programme provides helpful tips on buying, driving and maintaining a vehicle to reduce fuel consumption and greenhouse gas emissions that contribute to climate change. When buying a vehicle, one should look out for the EnerGuide rating label that is available on all new light-duty vehicles sold in Canada. The OEE also presents an EnerGuide for Vehicles Award for the most fuel-efficient vehicles sold in Canada.
13.4.12 In addition, there is a new ecoAUTO rebate programme and financial incentives are available to encourage the purchase of new light duty vehicles. Rebates range from $1,000 to $2,000 and are paid to individuals who buy or enter a long-term lease (12 months or more) for a fuel-efficient vehicle. With the ecoAUTO Rebate Program, the Government has committed $160 million over two years to offer performance-based rebates on new light duty vehicles. At the same time, there is a new Excise Tax (Green Levy) on Fuel Inefficient Vehicles that use 13 litres of fuel or more per 100km.
ecoENERGY for fleets
13.4.13 EcoENERGY for Fleets is a program for trucking companies and other commercial fleet operators which introduces fleets to energy-efficient practices that can reduce fuel consumption and emissions. FleetSmart is a component of this programme offering free practical advice on how energy-efficient vehicles and business practices can reduce fleet operating costs and greenhouse emission gases. The initiative is strongly based on information-sharing, workshops and training to help fleets increase their fuel efficiency.
Transportation
13.4.14 The transportation sector is the largest single source of greenhouse gas emissions in Canada. It accounted for approximately 28% of secondary energy use in Canada in 2003 and for about 34% of related greenhouse gas emissions. Consequently, there is a strong focus in Canada on providing advice, information and incentives related to fuel-efficiency in this sector. NRCan believes that Canadians can make a big difference and reduce greenhouse gas emissions by making energy-efficient choices related to transport in the following areas:
- Vehicle Efficiency - There is a voluntary initiative with vehicle manufacturers aimed at promoting improvements in motor vehicle fuel efficiency, including introduction of fuel efficiency technologies in new vehicles.
- Federal Vehicles - The Federal Vehicles Initiative aims at helping Government of Canada departments cut costs by increasing the efficiency of their fleets and helping reduce the environmental impact of operating them.
- Alternative Fuels - Vehicle fuel choices that are made today can greatly impact greenhouse gas emissions resulting from transportation. Canadian initiatives inform the public and encourage the production and end-use of alternative fuels such as biodiesel, ethanol, natural gas and hydrogen as well as cleaner conventional fuels such as low-sulphur diesel and reformulated gasoline.
13.5 Recommendations - Areas of Best Practice
13.5.1 There is an extensive range of regularly updated regulations and standards which enable Canadians to make informed and energy-efficient decisions about the products they purchase. The EnerGuide label for example provides energy efficiency ratings for homes, equipment and vehicles. In addition to that, there is the ENERGY STAR symbol which is already widely recognised and the R-2000 standard for homes.
13.5.2 Further development of (compulsory) energy efficient standards, ratings and regulations would also be strongly recommended for Scotland which would help eliminate inefficient products from the market and increase transparency about the energy efficiency of homes, equipment and vehicles. The Energy Performance Certificates and updated building standards represent a right step into this direction. In addition, a uniform energy efficiency rating could be developed for homes, all energy-using equipment as well as vehicles.
13.5.3 The OEE highlights the significance of energy use in the transportation sector and provides information and advice for buying, driving and maintaining vehicles as well as financial incentives for purchasing fuel-efficient vehicles.
13.5.4 It seems that in Scotland, support for energy efficiency and alternative fuels in the transportation sector is not covered sufficiently. Energy efficiency in this sector could be encouraged further and rebates on purchasing very fuel-efficient cars, possibly financed through a levy on inefficient cars, are measures that could have a significant impact on making people switch from inefficient to efficient vehicles. More advice and support for energy efficiency and alternative fuels in the transportation sector will de developed further as part of the proposed move towards the Scottish Sustainable Energy Network.
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